A country's balance of payments summarizes all economic transactions during a given period between residents of that country and residents of other countries
a. True
b. False
A
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Which of the following explains why firms in competitive price-searcher and competitive price-taker markets will both have zero economic profits in the long run but a monopoly will not?
a. There is always more than one firm in competitive price-searcher and competitive price-taker markets. b. Both competitive price-searcher and competitive price-taker markets are characterized by firms producing identical goods, but a monopoly is not. c. In both competitive price-searcher and competitive price-taker markets, the barriers to entry are low; this is not true under a monopoly. d. A monopoly firm has a downward-sloping demand curve; firms in the other types of markets do not.
In periods of high inflation, real wages change even if nominal wages remain constant.
a. true b. false
Specializing in the production of a good or service in which one has a comparative advantage enables a country to do all of the following except
A) engage in mutually beneficial trade with other nations. B) increase the variety of products that it can consume with no increase in resources. C) consume a combination of goods that lies outside its own production possibilities frontier. D) produce a combination of goods that lies outside its own production possibilities frontier.
Economic Profit exists whenever
A. a firm makes more than its competitors. B. a firm makes even one penny. C. A firm makes enough, so that it is required to pay taxes. D. a firm makes more than the minimum required to maintain the incentive to remain in the industry.